VW said it had told U.S. and Canadian dealers to stop selling recent models equipped with its 3.0 V6 TDI diesel engine.
European equities ended mixed Wednesday, with a rally in mining and oil stocks boosting sentiment.
The market has seen some big moves on earnings this season, and traders say these names could be next.
After a relatively quiet few week for European auto manufacturers, the scandal involving Volkswagen has come back with a vengeance this week.
Squawk Box Live tracked the slump in shares of Volkswagen and other automakers, plus the rally in Glencore after it said it was on track to cut debt.
European equities ended slightly higher on Tuesday as the rally in oil prices helped shake off weak earnings results.
Squawk Box Live in Europe had analysis of Standard Chartered and UBS earnings, plus the latest on the Volkswagen scandal.
The U.S. Environmental Protection Agency issued a second violation notice against Volkswagen, and this time included a Porsche.
Thousands of European companies operating in China are ready vehicles to promote the sales of European products and services in the country.
Rigging of diesel cars could cause around 60 deaths in the US by the end of next year, according to research by Harvard and MIT.
European markets closed sharply higher on Wednesday, as investor sentiment was boosted by earnings and a sharp rebound in oil prices.
U.S. stock index futures pointed to a higher open on Wednesday ahead of a statement from the Fed this afternoon and more earnings.
Volkswagen made an operating loss of $3.84 billion in the third quarter, as a scandal over falsifying its diesel emissions knocked the company.
Squawk Box Live had analysis on Apple's earnings, a look-ahead to the Federal Reserve's rate decision and updates on Volkswagen's earnings.
Herbert Diess apologized for the automaker's emissions-cheating scandal and said it will delay the launch of a diesel vehicle in Japan.
The VW investigation is also looking into managers who knew of the deception and failed to take appropriate measures, the NYT reports.
Political and social crises are hampering Europe's recovery. And even though they may have risen separately, they're increasingly interlinked.
The recall of potentially defective Takata airbags, one of the largest auto recalls in U.S. history, may grow even larger, the NYT reports.
It takes drivers up to 27 seconds to return to full attention after using voice commands to make a call, turn on the radio or perform other tasks.
Volkswagen may have to set aside more than the $7.4 billion it has so far allocated to cover the costs of an emissions scandal if car sales suffer.